Through a Health Reimbursement Arrangement (HRA), you receive tax-free money from your employer to cover expenses that may not be covered by insurance such as medical deductible/coinsurance, dental work, vision care and prescriptions. That means fewer out-of-pocket healthcare costs for you and more money in your pocket.
WHAT IS A HEALTH REIMBURSEMENT ARRANGEMENT (HRA)?
An HRA is a program that is fully funded by your employer and is designed to help you pay for out-of-pocket expenses.
HOW IT WORKS:
Your employer puts money into your HRA and you choose how your healthcare dollars are spent. Because the money is contributed by your employer doesn’t count as income, there are no tax implications. It’s kind of like getting a raise. You can use the money in the HRA throughout the year for qualified expenses. Depending on your plan design, any leftover dollars may roll over from year-to-year (as long as you continue to be a member of the plan) or they may be forfeited. Check with your Human Resources department or Plan Administrator for more information about your plan design.